Former owners whose Michigan property was sold at a county tax auction for more than they owed now have until November 23, 2026 to claim that surplus back — a deadline the court pushed out from July 16, 2026. The court-approved notice says a valid claim will usually be paid 125% of the surplus, less the attorneys’ fees the court awards. Twenty-eight counties are taking part in the Michigan tax foreclosure surplus settlement, and unlike many settlements, this one requires a claim form and proof of ownership.
Status: Claims open | Claim deadline November 23, 2026 (extended by an August 25, 2026 order) | Final approval hearing January 22, 2027, 3:00 p.m., Bay City | No payments before final approval and appeals
The Money Counties Kept
Until late 2020, Michigan’s General Property Tax Act let counties auction tax-foreclosed homes and land and keep whatever was left after the unpaid taxes, interest, penalties and fees were covered. Courts call that leftover amount “surplus proceeds,” and federal courts have since held that this part of the law could not stand.
Two class actions in the U.S. District Court for the Eastern District of Michigan — Fox v. County of Saginaw, No. 1:19-cv-11887, and Arkona v. County of Cheboygan, No. 1:19-cv-12372 — alleged the counties violated former owners’ rights by keeping the surplus. The counties deny wrongdoing, pointing in part to the fact that the statute in force at the time did not authorize them to return it. The court has not decided who is right.
The settlement has already survived one challenge. In December 2025 the court denied a plaintiffs’ motion to vacate the preliminary approval order and granted the counties’ motion to enforce the agreement.
Is Your County In?
The settlement website lists 28 participating counties.
| Fox case (26 counties) | Alcona, Alpena, Arenac, Bay, Clare, Crawford, Genesee, Gladwin, Gratiot, Huron, Isabella, Jackson, Lapeer, Lenawee, Macomb, Midland, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, St. Clair, Tuscola |
| Arkona case (2 counties) | Cheboygan, Monroe |
Washtenaw County was named as a defendant in the Fox case but does not appear on the participating list on the settlement website or in the class notice.
Who Can Claim
The class is everyone — including the estates of people who are bankrupt or deceased — who owned property in fee simple in a participating county that, from January 1, 2013 through December 31, 2020, was foreclosed for unpaid real property taxes and sold at tax auction for more than the minimum sale price, and to whom the county did not refund the surplus. Heirs of a deceased owner, and people authorized to act for an owner or an estate, can file.
125% — and What Comes Off It
According to the notice, a claimant with a valid claim will usually receive 125% of the surplus from the sale of their former property, minus court-awarded attorneys’ fees and costs. Interim class counsel has asked for 20% of the amounts paid. Its fee motion points out that 80% of 125% leaves most claimants with about 100% of their surplus. The court will set the fee at the final approval hearing.
The notice flags situations where a payment can be smaller or zero:
- Public Act 256 claims. If someone else with an interest in the property went after the surplus through Michigan’s Public Act 256 process, the class member may get nothing under the settlement, or a limited amount in some cases. The notice still says it usually makes sense to file a settlement claim even if someone else has brought a Public Act 256 claim.
- Claim volume. If a county gets an unexpectedly large number of claims, recoveries against that county may be reduced.
Staying in has a trade-off. Class members give up the right to seek more money from the county on these issues, including any bigger recovery a future change in the law might allow based on the foreclosed property’s value.
What the Claim Form Asks For
- The Unique ID printed on the class notice.
- The foreclosed property’s address, county, foreclosure year and tax or parcel identification number, plus any earlier names tied to the property.
- Documents showing the claimant’s interest at the time of foreclosure, such as deeds, tax bills, mortgages or utility bills.
- Extra papers for some claimants: a certificate of trust for trust property, proof of being a beneficiary or heir of a deceased owner, the appointing court and case number for a court-appointed representative, or the power of attorney itself.
The claim is signed under penalty of perjury. The settlement website tells people who think they are class members but have no Unique ID to contact the settlement administrator. OpenClassActions.com reports that the claim portal blocks automated access, so it could not confirm whether a claim can go through without the Unique ID.
How to File
Use the Submit a Claim Form page on the official Surplus Proceeds Settlement website. It links to the online portal and to a printable form that can be mailed to the administrator, RG/2 Claims Administration. The main settlement site posts the long-form notices for both cases, the settlement agreements and the court orders.
The Calendar
| August 21, 2025 | Preliminary approval of the Fox settlement |
| April 30, 2026 | Deadline to opt out or object listed in the notice (passed) |
| August 25, 2026 | Order extending the claim deadline |
| November 23, 2026 | Claim deadline |
| December 7, 2026 | Motion for final class certification and final approval due; responses by December 28, 2026 |
| January 22, 2027, 3:00 p.m. | Fairness hearing in Bay City, including the fee request |
Payments go out only after final approval and the end of any appeals. The notice says the whole process takes at least nine months from notice even without appeals. Michigan is not alone: our sister site also covers the Oregon tax foreclosure surplus settlements, and it keeps its Michigan surplus proceeds settlement page current.
Frequently Asked Questions
Which Michigan counties are in the surplus proceeds settlement?
The settlement website lists 28: Alcona, Alpena, Arenac, Bay, Clare, Cheboygan, Crawford, Genesee, Gladwin, Gratiot, Huron, Isabella, Jackson, Lapeer, Lenawee, Macomb, Midland, Monroe, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, St. Clair and Tuscola. Washtenaw County, a defendant in the Fox case, is not on the list.
How much does the Michigan surplus proceeds settlement pay?
The notice says a valid claim will usually receive 125% of the surplus proceeds from the sale, minus court-awarded attorneys’ fees and costs. Class counsel has asked for 20%, which its motion says would leave most claimants with about 100% of their surplus. Payments can be lower in some situations.
Someone else already filed a Public Act 256 claim on my property. Should I still file?
The notice says it usually makes sense to file a settlement claim even if someone else has brought a Public Act 256 claim, although a class member in that situation may receive nothing or a limited amount.
What do I need to file a Michigan surplus proceeds claim?
The Unique ID printed on the class notice, the property’s address, county, foreclosure year and parcel number, and documents showing your interest at the time of foreclosure such as deeds, tax bills, mortgages or utility bills. Heirs and representatives must provide additional documents.
Is the November 23, 2026 deadline final?
It is the current deadline under an August 25, 2026 court order, which replaced the July 16, 2026 date printed on the original notice and claim form. File on or before November 23, 2026.
When will payments be made?
Only after the court grants final approval and any appeals are resolved. The final approval hearing is scheduled for January 22, 2027, and no payment date has been set.
Sources
- Official Surplus Proceeds Settlement website — SurplusProceedsSettlement.com and its Submit a Claim Form page, including the class notices for both cases, the claim form and court documents.
- Fox v. County of Saginaw, No. 1:19-cv-11887 (E.D. Mich.): Order Granting Stipulation Regarding Amended Deadlines and Postcard Notice, ECF No. 517 (August 25, 2026); Opinion and Order granting preliminary approval (August 21, 2025); Opinion and Order granting motion to enforce settlement agreement and denying motion to vacate, ECF No. 503 (December 23, 2025); Interim Counsel’s Motion for Award of Attorney Fees and Costs.
- Arkona v. County of Cheboygan, No. 1:19-cv-12372 (E.D. Mich.): Order Granting Stipulation Regarding Amended Deadlines and Postcard Notice.
- OpenClassActions.com — Michigan Tax Foreclosure Surplus Proceeds Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Michigan Tax Foreclosure Surplus Proceeds Settlement: 28 Counties — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.